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I have been an equities enthusiast for over two decades. I have read tens of thousands of pages on investing in the stock market and continue to read about investing on a regular basis. Daily, I watch the stock market and study individual companies. I am a former military officer. I am a... More
  • EBAY Solid While Market Tanks 0 comments
    Jan 13, 2014 11:03 PM | about stocks: EBAY

    EBAY closed up .73% on 19 mil. shares (avg. 12 mil) to 52.54 while the market tanked 1.26% on earnings jitters, valuation jitters, and fed tapering jitters. As to earnings jitters, there have been several retailers reporting disappointing December revenues and/or guiding lower: BBBY, PIR, LULU, SODA, SHLD, GPS, FIVE, Shoe Carnival, for example. LULU and SODA were both crushed today--not good for high fliers to disappoint and BBBY was crushed last week. Cramer discussed the secular decline in mall shopping as stated by SBUX CEO last week. Some retailers have been doing well--Macy's, for example. Macy's omnichannel strategy has been serving it well and happily EBAY assists Macy's with that.

    EBAY Enterprise can play a pivotal role in helping traditional retailers navigate omnichannel strategies. While AMZN competes with retailers, EBAY can help retailers discover and leverage their secret weapon: store locations. While AMZN builds expensive warehouses, retailers already have locations in place, near consumers. EBAY can help such retailers fulfill web-based orders from the nearest retail locations so customers can pick the items up locally or receive them by mail much more quickly than from a distant warehouse. They can also conveniently return or exchange the items. So not only does EBAY give retailers a powerful tool to counter declining foot traffic, but it also helps them develop an inherent edge over one of their greatest online threats--AMZN.

    Happily, EBAY recently announced the signing of hundreds of new clients for its enterprise business:

    For more information on its "Ship from Store" solutions and successes:

    In other news, on 1/9:

    "eBay Inc. (NASDAQ:EBAY) may provide investors the best risk-reward profile in the Merrill Lynch coverage universe, given lower expectations, improved e-commerce trends and the fact the stock has underperformed this year. The analysts also believe eBay benefited from heavy promotions, seller incentives, scarcity of key items at other online and offline retailers and large PayPal mobile volumes. The Merrill Lynch price target for the stock is $64 and may be poised to go higher. The consensus target is just over $62. eBay closed Wednesday at $52.37."

    Today, the following was reported:

    "Piper Jaffray expects eBay to report in-line December quarter results and to issue FY14 revenue guidance that falls 2% below the Street's $18.5B estimate. Piper believes the below-consensus outlook will not surprise investors, noting that eBay has guided revenue an average of 2% below the Street in the last nine quarters. The firm keeps an Overweight rating on the stock."

    What a great day when the market got slammed and an analyst lowered the revenue outlook for EBAY and yet EBAY went up on strong volume! Who cares about a 2% revenue decline when the company is still going to show double-digit revenue growth on a reasonable valuation with a strong balance sheet? Most companies would like to be in such a position!

    Disclosure: I am long EBAY, .

    Stocks: EBAY
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